The Boston Tea Party (1773) marked the peak of American civil resistance to British rule, paving the way for revolution and independence. Last year, America's grassroots movement, known as the "tea party protesters", went on the warpath. They are revolting against the return of "big government" as personified by President Barack Obama.

Many of Mr Obama's headaches have been inherited from the Bush Administration. Two wars, a swelling public service and an economic rescue package estimated at $1 trillion. In his rush to push through his agenda (healthcare, Guantanamo Bay, the environment and immigration), President Obama has roused US public anger. At a time when real incomes are falling, the middle-class is in no mood to pay more taxes.

On taking office, Mr Obama had insisted he wanted an efficient, not small or big, government. And yet, the figures speak for themselves. The fiscal deficit stands at a post-war high (12 per cent of GDP) while national debt is over $12 trillion. Since 2007, some seven million employees have lost their jobs and an estimated 17 per cent of the workforce is looking for a full-time job. Despite some green shoots, economic recovery is expected to be slow and jobless. These days, mighty America pacifies its masses through cheap imports and pays for its debts through Chinese savings.

Mr Obama's woes are compounded by some serious lapses such as the failed Delta terrorist attack. The Republicans have sensed this growing public frustration, took a leaf from Mr Obama's own campaign book and mobilised the "tea party protesters" through the internet's social networks. Mr Obama's popularity plummeted. "Independent" voters are starting to desert him.

In the recent Senate-election in Massachusetts (a Democrats' stronghold), the Obama team was caught napping and the Republicans registered a great strategic and symbolic victory. This result has shifted the balance of power within the US as President Obama no longer enjoys an "absolute" majority in both Congress and the Senate. From here onwards it will be harder for him to push his reforms.

He realises that, from now on, he has to learn to live with the Republicans. During last week's State of the Union address, a non-apologetic Mr Obama spoke on bi-partisanship, hinting that shared power implied shared burdens and responsibility. The President also redefined his agenda; creating export-led jobs is now top priority. He acknowledged the people's concern about the government's deficit and promised to tax the rich and the banks.

These last remain President Obama's enemy number one. They will not take the weakening of their profit-driven hegemony lying down. In the name of the free market and enterprise, they managed to secure privileged taxation rates and no regulation. Their greed has made Joe Citizen realise that "free markets" do not mean "competitive markets" and that improper regulation leads to abuse.

Big capital can be as wasteful and irresponsible as big government. Just a few months after bringing the global economy to the edge of a "black hole", big capital is already raking fat profits and paying itself super bonuses. President Obama has vowed not to let history repeat itself. He says that he is ready to fight Wall Street, if that is what they are after.

It is ironic that the battle between big government and big capital is being fought at the very heart of the capitalist system. Perhaps, we really are at the end of history (Fukuyama and Nostradamus permitting). It is not the ultimate triumph of democracy and neo-liberalism but, rather, the realisation that the two are inherently incompatible. Perhaps strategist Kenichi Ohmae too will re-consider his End Of The Nation State thesis.

As The Economist pointed out: "Today, big government is back with a vengeance: not just as a brute fact but as a vigorous ideology" (January 10, 2010). Among the more advanced economies, the French and British governments (at 55 per cent and 50 per cent of GDP respectively) are the trend-setters. (The US government accounts for 40 per cent of GDP). Neo-liberals warn that the bigger the government, the more it will grow. Possibly, but this is also an inherent characteristic of capitalism.

The Economist claims that what is unfolding is a new form of "state capitalism". The needs of aging populations, increased regulation of everything, greater "regimentation" of our lives in the name of wars on terrorism and organised crime and the continued rise of state-owned global corporations all indicate that the state is back. Moreover, China's 30 years of rapid economic growth and massive foreign currency reserves is proof that state capitalism can thrive if it too plays by the "market rules".

Where do we Maltese stand in all this? Political bi-partisanship, that thing about togetherness, though badly needed, remains a chimera. As to big government, it has been with us all the time. Its form may have changed but, despite all the liberalisation, privatisation and neo-liberal talk, such as reduced subsidies, our economy is still dominated by the state. The water and electricity tariffs are an obvious case in point.

National security considerations and the growth of ICT are making it easier for our government to also play the role of big brother. As to big capital, it keeps getting bigger. Big capital has hijacked the body and soul of our country and its tentacles permeate throughout our politico-social fabric. Perhaps, we Maltese citizens too need to organise some tea parties.

fms18@onvol.net

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